PayPal Opens Crypto Withdrawal and Deposit功能 to Third-Party Wallets and Exchanges

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The global digital payments leader PayPal has taken a significant step forward in its cryptocurrency journey by launching a highly anticipated feature: the ability for users to transfer crypto assets between their PayPal accounts and external wallets or exchanges. This move marks a pivotal shift from a closed-loop system to a more open and user-friendly crypto experience, reinforcing PayPal's commitment to building a comprehensive digital currency ecosystem.

Starting June 8, 2022, select U.S. users can now withdraw Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) from their PayPal accounts to third-party wallets, hardware wallets, or exchange addresses. Conversely, they can also deposit crypto into PayPal from external sources. Notably, PayPal does not charge any withdrawal or deposit fees — users only pay standard network transaction fees.

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This update addresses long-standing criticism that PayPal’s earlier crypto offering was too restrictive. Previously, users could only buy, sell, and hold cryptocurrencies within the PayPal ecosystem, with no option to transfer assets externally — leading many to label it a “closed system” and argue that it wasn’t offering “real crypto.” Now, with full deposit and withdrawal capabilities, PayPal is aligning itself more closely with mainstream crypto expectations.

A Long-Awaited Upgrade for True Ownership

One of the core principles of cryptocurrency is self-custody — the idea that users should have full control over their digital assets. For years, PayPal fell short of this standard. While it introduced crypto buying in late 2020 and enabled checkout with crypto in early 2021, the inability to move assets outside the platform undermined user autonomy.

Now, users can:

Internal transfers between PayPal users remain fee-free and do not incur blockchain network costs, making peer-to-peer transactions fast and cost-effective.

Strategic Moves Behind the Scenes

PayPal’s evolution in the crypto space isn’t happening in isolation. The company has been strategically positioning itself for deeper blockchain integration through key acquisitions and product development.

In March 2021, PayPal acquired Curv, a cloud-based digital asset custody platform, enhancing its ability to securely manage private keys and support institutional-grade infrastructure. This acquisition laid the technical foundation for enabling safe off-platform transfers.

Moreover, reports from CoinDesk in September 2021 revealed that PayPal was actively exploring the launch of its own U.S. dollar-backed stablecoin, tentatively referred to as “PayPal Coin.” Though no official launch has occurred as of 2025, these developments suggest PayPal is preparing to play a larger role in the future of digital payments — one where stablecoins and interoperable wallets are central.

Why This Matters for Mainstream Adoption

PayPal’s user base exceeds 400 million active accounts worldwide. By opening up its crypto ecosystem, even just to U.S. customers initially, PayPal is effectively introducing millions of new users to the concept of crypto interoperability — the ability to move value freely across platforms.

This change could accelerate mainstream understanding of blockchain technology by:

For many, this may be their first real interaction with self-custody — a gateway to further engagement with DeFi, NFTs, and Web3 applications.

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These terms reflect common queries from users seeking guidance on how to use PayPal’s updated crypto features, ensuring the content matches real-world search intent.

Frequently Asked Questions (FAQ)

Can I send crypto from PayPal to any wallet?

Yes, PayPal supports sending BTC, ETH, BCH, and LTC to most third-party wallets and exchange addresses. However, ensure the recipient address is compatible with the specific cryptocurrency you're transferring.

Are there fees when withdrawing crypto from PayPal?

PayPal does not charge a service fee for withdrawals. You will only pay the prevailing network (miner) fee, which varies based on blockchain congestion at the time of transfer.

Is the deposit feature available for all cryptocurrencies?

Currently, only Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) are supported for both deposits and withdrawals.

When will this feature be available outside the U.S.?

As of now, the rollout is limited to U.S. users. PayPal has not announced an international expansion timeline but stated it plans to expand access gradually.

Can I transfer crypto between two PayPal accounts?

Yes, PayPal users can send crypto directly to other PayPal users at no cost and without incurring network fees. This internal transfer system operates off-chain.

Does PayPal offer a dedicated crypto wallet?

While not branded separately yet, PayPal functions as a hosted crypto wallet for buying, selling, holding, and now transferring digital assets. Rumors suggest a standalone non-custodial wallet may be in development.

The Road Ahead: Toward Open Financial Infrastructure

With this upgrade, PayPal is signaling a clear direction: from being a passive gateway for crypto purchases to becoming an active participant in the open financial web. By allowing users to take full control of their assets, it fosters greater trust and usability — essential ingredients for mass adoption.

As regulatory frameworks evolve and consumer demand grows, we may soon see PayPal integrate additional features such as staking, cross-border remittances via stablecoins, or even DeFi access — all built on a foundation of secure, interoperable infrastructure.

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Whether or not “PayPal Coin” becomes a reality, one thing is certain: PayPal is no longer just a payment processor — it's becoming a bridge between traditional finance and the decentralized economy.